The Central Bank of Nigeria has denied allegations that it plans to revoke more bank’s licenses after revoking Heritage Bank’s license.
Hakama Sidi Ali, the acting Director of Corporate Communications at CBN, made this clarification in a statement on Tuesday.
Recall that on Monday, the apex bank announced the withdrawal of the Heritage Bank license.
The development created panic among customers.
However, CBN reiterated that the country’s financial system remains safe, sound and resilient.
The statement added that CBN has begun submitting implementation plans for the banking sector recapitalisation.
“The attention of the Central Bank of Nigeria (CBN) has been drawn to some information circulating in the public domain, suggesting that the CBN is set to revoke the licenses of three additional banks following its regulatory action against Heritage Bank Plc on Monday, June 3, 2024.
“The CBN unequivocally states that these allegations are false and intended to trigger panic in the financial system.
“The Nigerian financial system remains safe, sound, and resilient. Our banks have begun submitting implementation plans for the Banking Sector Recapitalisation Programme in compliance with the CBN Circular reviewing the minimum capital requirements for Commercial, Merchant, and Non-Interest Banks (CMNIBs). These plans are currently being reviewed by the Bank.
“In addition to enhancing buffers to withstand economic shocks, this proactive measure by the CBN to require CMNIBs to recapitalize will result in increased capital for Nigeria’s banks, enabling them to provide much-needed credit to critical sectors of the economy. This will increase the financial system’s contribution to the growth and development of a $1 trillion Nigerian economy.
“The CBN would like to reassure all stakeholders of its unwavering commitment to ensuring the financial system’s stability. Our financial system remains on a solid footing, and the CBN will continue to take all necessary steps to maintain its safety and soundness,” it stated.
Recall that in April, CBN announced new minimum capital requirements for all banks in Nigeria to achieve the Nigerian government’s $1 trillion economy target.
Earlier, the Nigeria Deposit Insurance Corporation, NDIC, has assured depositors of their funds.
